Repository: UIHistories Project: Board of Trustees Minutes - 1950 [PAGE 12]

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UNIVERSITY OF ILLINOIS

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without premium, or at 2 per cent premium sixth to tenth years and I per cent premium thereafter for entire loan. This offer is below the budget estimate of cost of the project by $44,802, but the architects believe that an adjustment in cost can be made to bring the total outlay within this amount of funds. It exceeds the operating budget of the project by $2,403 a year, but this is based on an allowance of 5 per cent for vacancy which is believed to be liberal. ( I t should be noted that this budget does not allow for the payment of local property taxes on this project.) This offer is based on the construction of one-half of the total project including one six-story and one three-story building. Arguments can be made against going ahead with this proposal at this time. They are: (a) the very high cost of construction, (b) the close margin of net operating income available for debt service, and (c) possible deficit if local property taxes become payable. In favor of going ahead with the project, however, arc the following facts: (a) a fund has been appropriated for this purpose by the General Assembly and is available for the current biennium, (b) an acute need for additional housing facilities for staff and graduate students still exists, (c) the site is owned by the University, (d) there is no assurance that construction cost will be decreased in the near future, and (e) if the project can be initiated and half completed during this biennium, there is a possibility that funds can be secured for the remainder during the succeeding biennium. In view of all these considerations, the Director of the Physical Plant Department, the Comptroller, and the Provost recommend: 1. That awards be made to the low bidders for the construction of one-half of this project for total contracts of $1,222,995.39, an estimated total cost of $1,674,802. 2. That the offer of Salk, Ward, and Salk, Inc., Chicago, for a loan of $900,000 be approved. 3. That the University of Illinois Foundation be requested to cooperate in the completion of this financing. I concur in these recommendations.

The Comptroller presented this matter. The Legal Counsel commented on the matter of taxation. On motion of Mr. Livingston, these recommendations were adopted.

AWARD OF CONTRACTS FOR MATERIALS FOR UTILITIES DISTRIBUTION SYSTEM TO THE STAFFSTUDENT APARTMENTS (11) Bids have been received for materials to be used in the construction of the Utilities Distribution System tunnel east on Illinois Street from Mathews Avenue to supply the proposed Staff-Student Apartment project, viz., steam piping and insulation. It is recommended that the lowest bids be accepted. The awards will be made with the understanding that if bids for the tunnel construction, to be received July 23, establish conditions which can not be met, or that if for any reason the Staff-Student Apartments themselves can not be constructed, these two contracts will not be executed. The lowest bidders are as follows: Division " L " •— Reliance Welding and Heating Company, Galesburg $12 368 Division "K" •— Asbestos & Magnesia Materials Company, Chicago 6 958 Funds are available in the Utilities Distribution System project for this work. I concur in this recommendation and request that the Comptroller and Secretary of the Board be authorized to execute the contracts as recommended, subject to above condition.

On motion of Mr. Williamson, this award was made and authority was given as recommended.